Mallya to face jail if he ever steps foot in India, rules court

If Vijay Mallya ever returns to India he faces four months in jail and a fine of 2,000 rupees for being in contempt of India’s highest court.

That was the sentence passed on him today by India’s Supreme Court in New Delhi. The former head of United Breweries and United Spirits fled to Britain in March 2016 to avoid arrest.

Mallya was convicted of contempt in 2017 over transferring US$40 million to his children in violation of court orders.

The newly ordered fine of 2,000 rupees is to be paid within four weeks or a further two months’ imprisonment will be added to the sentence.

The country’s top court also said that Mallya’s transfer of US$40m to his children is “void and inoperable”, ordering the recipients to return the amount with 8% interest to the court within four weeks.

If the sum is not returned, Vijay Mallya’s remaining properties in India can be attached.

Mallya was convicted of contempt for the cash transfer to his children and failure to disclose that in violation of court orders. That money had been paid to him by Diageo as part of a severance deal.

The world’s biggest premium beverage alcohol group is now seeking to recover that sum from Mallya, plus approximately a further £200 million after audits found discrepancies in United Spirits’ finances under his stewardship.

The Indian courts ordered Mallya to return more than £1.15 billion owed to a consortium of banks in the wake of the calamitous bankruptcy in 2012 of his Kingfisher Airways.

The financial authorities seized Mallya’s property to repay those principal debts but he also faces trial for fraud and money laundering.

Mallya has exhausted all available court procedures in the UK to avoid extradition to India to face those charges.

He is also appealing against judgment in the UK in an attempt to overturn a bankruptcy order imposed on him by the high court in London in July last year. The next hearing is not thought likely to take place for at least 12 months.

Despite the Supreme Court in London refusing to hear his case against extradition, he continues to  live at his estate in Hertfordshire as well as in a luxury mansion in the exclusive Regents Park area of London.

British authorities say they cannot execute the extradition warrant against Mallya until “private legal matters” are resolved.

This is thought to be an appeal for political asylum based on his claim that he will not receive a fair trial in India.